JASWANT RAI CHURAMANI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference purports to have been made under Section 66 of the Indian Income-tax Act, 1922. The learned counsel for the parties are agreed that the case is in fact governed by the Income-tax Acts 1961. We may, therefore, dispose of the reference as one made under Section 256 of the Income-tax Act, 1961 (hereafter referred to as "the Act").

(2.) JASWANT Rai Churamani, assessee, is an individual. The assessment year is 1962-63. The accounting period ended on March 31, 1962. In the year 1962, the assessee took out an insurance policy from the Life Insurance Corporation of India. The sum assured was Rs. 25,000. The assessee had to pay five annual premiums of Rs. 4,687'50. As required under the insurance policy, the assessee paid the Corporation the sum of Rs. 4,687.50 in March, 1962. The assessee claimed rebate for the sum of Rs. 4,687 as premium paid under the insurance policy. The claim for rebate was disallowed by the Income-tax Officer. His view was upheld in appeal by the Appellate Assistant Commissioner and by the Appellate Tribunal. The Appellate Tribunal, Delhi Bench "C", has, at the request of the assessee, referred the following question of law to this court :

(3.) THE question is whether the present case is covered by Sub-clause (i) of Clause (a) of Section 87(1) of the Act.